Money was invented for a purpose. This purpose was to exchange ‘value’ for ‘value’ in a trade situation. I would trade a bushel of wheat for a dozen eggs (for example). This is ‘value’ for ‘value’. But trading items of production is slow and subjective. A better option is to invent some item of ‘value’ which people generally accept. This has occurred throughout history and eventually items like silver coins (viewed as having intrinsic value) and gold coins (viewed similarly) provided our markets with money (with value).

Governments gradually claimed control over our markets and defined ‘value’ and money officially. For Americans this happened with the Coinage Act of 1792. America invented the ‘dollar’ and defined this unit as 371.25 grains of silver and/or 24.75 grains of gold. A mint was established in Philadelphia to create coins with ‘value’ for the marketplace. This resulted in our money and started a system for calculating ‘value’ (prices) of all items of production.

Keep in mind that every nation today defines and creates their own money units for their markets. Today, we have some 174 global currencies which trade internationally. These currencies were all defined in terms of some physical item (like silver/gold) for most of our history. All this changed after America’s President, Nixon, closed the gold exchange process in 1971. Today, all currencies are mostly digital (computer numbers) and we trade inner/subjective numbers as an item of ‘value’.

If you look at your smart phone and click on an app which displays market activity in real-time, you can watch these computer digits go UP and DOWN all day long. I, personally, use the CNBC app and the Webull app to witness what is happening within these digital markets. I can watch stock indexes going UP and DOWN as computer trading occurs globally in real-time. All this is now an ‘inner’ experience within my mind. I visualize the digital markets in my computer screen and this gives me numbers as they go UP and DOWN within an exchange.

What we need to understand is that today’s markets trade metaphysical money units (mere numbers) rather than an item of ‘value’ (such as silver or gold). This fools nearly everyone who lacks an understanding of monetary history. Monetary history reveals that money was chosen to represent ‘value’ and that the money item was some ‘thing’ which we could exchange from hand to hand. We exchanged physical coins and paper notes for some item which we desired to purchase.

Today, we exchange metaphysical numbers (within our mind and also numbers circulating within cyberspace). I swipe a credit card at a retail establishment or use my smart phone to purchase items of production. I think (mentally) and then act. I do not need any physical coins or paper notes. This cashless world which is emerging globally is what we now live with. What does all this mean for economics, trading, and finance going forward?

What this means is that our Central Banks now control all these inner/digital markets. Central computers operating within select Central Banks can push our digital index markets UP and DOWN with the click of a computer mouse. Trading is also being done with Robots which operate automatically in real-time. Numbers get traded as units of ‘value’ and traders assume that these ‘numbers’ are representing an economy and the wealth being produced.

In reality, however, these ‘numbers’ represent nothing physical and do not (necessarily) represent the production which our markets exchange. I could be trading mere metaphysical ‘numbers’ within my smart phone (all day long) and nothing could be produced (no oil, no wheat, no cattle, no bread, no steel, no concrete, etc.). Numbers and inner valuations of production could be occurring within the mind of traders while real physical production is not being measured.

All our Bureau of Labor statistics are now distorted and some are meaningless. This occurs because there is NO ‘tie’ of our money units to real (material) production. Is our economy growing or not? It all depends. The index numbers within all our digital stock markets may not be reflecting REAL production from the land. In reality, economics is supposed to be about production (food items, clothing items, shelter items, transportation items, etc.). Trading inner digits within our smart phones may not reflect real economic activity in the field.

What we need to understand is that economics is about production from the land. America was the greatest producer of material items of production until the closing of the gold window in 1971. Our money item (the dollar) was ‘tied’ to a material object from nature (gold). All money units were ‘tied’ to our dollar via the Bretton Woods Monetary Agreement of 1944-46. We had money that allowed us to MEASURE value (somewhat objectively). All this changed with Nixon’s closing of the gold window.

Today, we live with imaginary money which was invented after this closing of the gold window. Our dollar is mere math (a weighted average of numbers). All currencies are now mere ‘numbers’ (math). These ‘numbers’ are now digital units within all our computer screens. We trade this digital units which live in cyberspace. This is ludicrous when understood. Trading mere ‘inner’ digital units (in cyberspace) does not MEASURE what is really happening within our real markets (of production).

Venezuela’s digital index market is called the Caracas General. It has crashed twice (2017 and 2018) and then has continued after these crashes. The real production over in Venezuela is not being MEASURED properly as their Caracas General market is merely a bunch of numbers circulating within cyberspace. It’s a total JOKE on one’s intelligence. Yet the elites who run this CASINO of inner digits can not discern what they are doing. This is similar to what is happening within all our digital markets.

The markets are distorted, confused, manipulated, rigged, and mostly meaningless. All this will lead to a GREAT CRASH sometime in 2019 IMO. This CRASH will be similar to what has already happened in Venezuela. The digits in our smart phone screens will decline to near zero and eventually our elites and traders will discern what is happening. As I write, the Toronto Stock Exchange is DOWN some 150 digits (points) and the Dow Index is DOWN some 310 digits (points). What a JOKE on human intelligence!

We need a NEW ECONOMIC MODEL for this planet. But first we need to start THINKING about reality. Fantasy is what I witness today within all our markets. Can fantasy survive indefinitely? I don’t think so! A huge market CRASH is coming. Get out of these digital stock markets and all digital currencies (to a degree). The HOUSE OF CARDS is built upon sinking sand. LOOK at your smart phone screen for evidence of this inner market which we call our ECONOMY. It’s a total JOKE on human intelligence. My view!